This paper discusses the critical issues in China as it moves towards an inclusive education with a focus on the challenges of developing the concept of inclusion for Chinese teachers. Whilst the laws and regulations have entitled children with a 9-year compulsory education, in practice, children with special educational needs find themselves being integrated rather than included in the mainstream schools. The author argues with a small scale research that the failure to address the needs of children is largely due to the understanding of inclusion, which can be developed through teacher education to meet the challenges of the inadequate professional knowledge and expertise of special education teachers.